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Agenda 01/27/2015 Item #16G1 1/27/2015 16.G.1 . EXECUTIVE SUMMARY Recommendation that the Board of County Commissioners, acting as the Collier County Airport Authority, approve a Budget Amendment from the General Fund in order for the Airport Authority to satisfy a Final Judgment for$274,212.21 (plus statutory interest) in the case of Quality Enterprises USA,Inc.v. Collier County Airport Authority(Case No. 12-4345 CA). OBJECTIVE: To satisfy a Final Judgment entered against the Collier County Airport Authority. CONSIDERATIONS: The case of Quality Enterprises USA, Inc. v. Collier County Airport Authority was tried before a jury on December 16th and 17th, 2014. The case involved a breach of contract action stemming from a June 14, 2007 contract that Quality Enterprises was awarded for the construction of a lake at the Immokalee Airport. During the course of that project, the Airport Authority essentially bartered $240,000 worth of additional services for the construction of an Airport Parking Apron in exchange for the fill dirt that Quality Enterprises had removed to create the lake. Following completion of the Project in or about June of 2008, Quality Enterprises removed some of the fill. The economic downturn then hit, and the remaining dirt was left. A few years passed, economic activity began to pick up, and Quality Enterprises sought to remove the remaining fill. By this time, a new Executive Airport Director was in place, and it was determined that removal of the fill would require the issuance of an appropriate permit. The parties remained at impasse, and in December of 2012 Quality Enterprises filed suit for breach of Contract against the Authority seeking unspecified damages. On March 26, 2013, the Clerk presented the Board with an Audit Report of this transaction. The Audit Report noted a number of concerns including grant-related concerns; the Lake Project was funded by a USDA grant. The parties attended Court-Ordered Mediation, but the parties were not able to finally settle this matter resulting in the jury trial in December 2014. On December 17, 2014, the jury found in favor of Quality Enterprises and awarded Quality Enterprises $196,656.00 (damages), plus statutory interest in the amount of$77,556.21 for a total of$274,212.21. Interest will continue to accrue at the statutory rate of $25.59 (4.75%), per day, until the judgment is satisfied. FISCAL IMPACT: Final Judgment for $274,212.21 (plus statutory interest of $25.59/day). Sufficient budget does not exist within the Airport Family of funds to pay the judgment amount. Therefore, budget amendments will be necessary moving funds in the amount of $275,800 from the General Fund as an advance to Airport capital fund(496). GROWTH MANAGEMENT IMPACT: None. RECOMMENDATION: That the Board of County Commissioners, acting as the Collier County Airport Authority, approve a Budget Amendment from the General Fund in order for the Airport Authority to satisfy a Final Judgment for $274,212.21 (plus statutory interest) in the case of Quality Enterprises USA,Inc.v. Collier County Airport Authority(Case no. 12-4345 CA). Prepared by: Colleen M. Greene,Assistant County Attorney Attached: Final Judgment dated January 2,2015 Packet Page-864- 1/27/2015 16.G.1. COLLIER COUNTY Board of County Commissioners Item Number: 16.16.G.16.G.1. Item Summary: Recommendation that the Board of County Commissioners, acting as the Collier County Airport Authority, approve a Budget Amendment from the General Fund in order for the Airport Authority to satisfy a Final Judgment for$274,212.21 (plus statutory interest) in the case of Quality Enterprises USA, Inc.v. Collier County Airport Authority(Case No. 12-4345 CA). Meeting Date: 1/27/2015 Prepared By Name: CrotteauKathynell Title: Legal Secretary, CAO Office Administration 1/14/2015 10:22:53 AM Approved By Name: MarkiewiczJoanne Title: Director-Purchasing/General Services,Purchasing&General Services Date: 1/14/2015 3:04:23 PM Name: MarkiewiczJoanne Title: Director-Purchasing/General Services,Purchasing&General Services Date: 1/14/2015 3:04:36 PM Name: HerreraSandra Title: Manager-Procurement,Purchasing&General Services Date: 1/15/2015 9:16:58 AM Name: JohnsonScott Title: Manager-Procurement,Purchasing&General Services Date: 1/15/2015 9:32:45 AM Name: MarcellaJeanne Title: Executive Secretary,Transportation Planning Date: 1/20/2015 2:36:14 PM Name: GreeneColleen Packet Page-865- 1/27/2015 16.G.1. Title:Assistant County Attorney, CAO General Services Date: 1/20/2015 2:41:43 PM Name: IsacksonMark Title: Director-Corp Financial and Mngmt Svs, Office of Management&Budget Date: 1/20/2015 2:55:29 PM Name: KlatzkowJeff Title: County Attorney, Date: 1/21/2015 8:37:29 AM Name: OchsLeo Title: County Manager,County Managers Office Date: 1/21/2015 11:06:44 AM Packet Page-866- 21" 1/27/2015 16.G.1. IN THE CIRCUIT COURT OF THE TWENTIETH JUDICIAL CIRCUIT IN AND FOR COLLIER COUNTY, FLORIDA ° CIVIL ACTION ` ' r- QUALITY ENTERPRISES USA, INC., cn =D'� a Virginia corporation, =� • Plaintiff, _, w F-4 v. Case No.: 12-4345-CA — °rJ COLLIER COUNTY AIRPORT AUTHORITY, Defendant. FINAL JUDGMENT This case was tried to a jury on December 16, 2014 and December 17, 2014, and based on the verdict rendered in this action: IT IS ADJUDGED that Plaintiff Quality Enterprises USA, Inc., whose address is 3894 Mannix Drive, Suite 216, Naples, Florida 34114, recover from Defendant Collier County Airport Authority, whose address is 2005 Mainsail Drive, Suite #1, Naples, Florida 34114, the principal sum of$196,656. IT IS ALSO ORDERED AND ADJUDGED that Plaintiff is entitled to prejudgment and post judgment interest at the statutory rates beginning on June 1, 2008. Through January 1, 2015, Plaintiff is entitled to recover interest in the amount of $77,556.21, which, when added to the principal sum, results in a total of $274,212.21, for which let execution issue. Per diem interest at the current statutory rate of 4.75% is $25.59, and that amount shall be added to the judgment for each day after January 1, 2015 until the judgment has been satisfied. [4094-000512141185/1] Packet Page-867- 1/27/2015 16.G.1 . The Court reserves jurisdiction to enforce this Final Judgment. 41‘' DONE AND ORDERED at Naples, Florida, on this ,A day of e 1 20 /S . HONG' ,. :LEZMES R. SHENKO Circuit :urt Judge Conformed copies to: Edward K. Cheffy, Esq. Clay C. Brooker, Esq. Gregory N. Woods, Esq. Colleen M. Greene, Esq. (4094-0005/2141185/11 Packet Page -868-